Thursday, February 2, 2012

And He Doesn't Get the Fact that If You Pay People Not to Work, Some Will Not Work

Also from Bernanke's testimony:
Particularly troubling is the unusually high level of long-term unemployment: More than 40 percent of the unemployed have been jobless for more than six months, roughly double the fraction during the economic expansion of the previous decade.

He also doesn't get that Fed money printing distorts the economy in favor of the capital goods sector. He seems surprised that manufacturing is doing better than the (consumer) household sector:
In contrast to the household sector, the business sector has been a relative bright spot in the current recovery. Manufacturing production has increased 15 percent since its trough, and capital spending by businesses has expanded briskly over the past two years...


  1. What most bureaucrats are totally oblivious to is the black market or commonly referred to "under the table" economy. The worst thing for the government is that these people are totally off the government radar at all levels. No licenses, no insurance, no taxes, no bonding, no regulation but really cheap prices. You don't even have to pay them in cash either. They'll just take your check and go to the local check cashing place and turn it into cash. I know several people that collected full benefits while working under the table. I know one guy that toured the country in a motor home for two years while collecting benefits. I'm sure there are those that are truly helped by this benevolence of government with my young children's future earnings, but my bet is that most scam the system hard.

  2. Just keep ignoring ABCT and maybe it will go away, eh Ben?